Washington -LRB- CNN -RRB- -- An undercover investigation by the Federal Trade Commission found funeral homes nationwide deceived customers into making purchases they were n't required to make and failed to give up-front pricing to customers .

Undercover FTC agents posing as customers found `` significant violations '' in 23 of the 102 funeral homes investigated , according to the FTC .

Operators violated key provisions of the `` Funeral Rule , '' a 1984 regulation the FTC put in place to prevent funeral home operators from forcing customers to buy caskets or any other item as a condition of paying for a funeral . Another provision of the rule requires funeral homes to provide an itemized price list during the first in-person funeral arrangement meeting .

Nationally , Richmond and Fredericksburg , Virginia had the highest number of funeral homes found with significant violations , according to the FTC 's report . Eight of the 19 funeral homes investigated in the two cities committed significant violations . Columbia , South Carolina , was next with five significant violations out of 10 funeral homes inspected .

Thirty-three funeral homes had what the FTC called minor compliance issues . In those cases , the FTC contacted the funeral homes and required proof they were addressing violations .

The FTC gives funeral homes an opportunity to right their wrongs before they 're hauled into court . A three-year program run by the National Funeral Directors Association gives participants extra training and additional compliance monitoring . Funeral homes that participate are allowed to make a payment to the U.S. Treasury in place of a civil penalty . Civil penalties can be up to $ 16,000 per violation , according to the FTC .

Jessica Koth of the National Funeral Directors Association says the `` NFDA takes compliance with the Funeral Rule seriously . '' Koth says the organization encourages members to meet all obligations .

Since the annual undercover stings began in 1996 , the FTC said investigators have found fewer than 400 funeral homes with significant violations . There are 19,680 funeral homes in the United States , according to the NFDA .

FTC inspections during 2011 encountered varying levels of compliance :

-- In northwestern Indiana , one of 12 funeral homes inspected had significant violations ;

-- In Maui , Hawaii , none of the four funeral homes inspected had significant violations ;

-- In the New York City area , as well as parts of Connecticut and New Jersey , one of 22 funeral homes inspected had significant violations ;

-- In Cleveland , four of 16 funeral homes inspected had significant violations ;

-- In Columbia , South Carolina , five significant violations were found in 10 funeral homes inspected ;

-- In Austin , Texas , four of 19 funeral homes inspected had significant violations ;

-- In Richmond and Fredericksburg , Virginia , eight of 19 funeral homes inspected had significant violations .

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` Significant violations ' found in 23 of 102 funeral homes investigated

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Some forced customers into buying caskets as a condition of paying for a funeral

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Richmond and Fredericksburg , Virginia , had the highest number of offenders

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Five of 10 funeral homes in Columbia , South Carolina , had significant violations